In countries where finance is mainly provided by banks we would expect:

Question

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In countries where finance is mainly provided by banks, there is a greater emphasis on the balance sheet as banks typically rely heavily on the financial information provided by the borrower's balance sheet to gauge the creditworthiness of the borrower. Therefore, banks in such countries place a lot of value on the quality of the balance sheet of potential borrowers. On the other hand, there may actually be less public disclosure required in such countries, as banks may have established relationships with their clients and be less reliant on public disclosures. Additionally, bankruptcy laws may be less lenient since banks may want to protect their assets and investments in borrowers who have defaulted on their loans.

In Countries Where Finance Is Mainly Provided by Banks We